ChronoSnake: Story wise, does it have a significant impact on the game? Or is it more just a couple npcs will acknowledge it in a line of dialogue or two?
I've played through twice now, with an import where I sided with the Squirrels, and a game where I didn't import at all.
I'm 99% confident there aren't any significant impacts on the game from anything you did in W1. In fact, the real impact is if you've imported, you'll start with significantly better gear that doesn't get replaced for half the game. Things were definitely a little more difficult, but rewarding since I actually had to work on upgrades, on my non-import playthrough.
As a squirrel lover, I did get some members of the Order talking down on me late in the game. But, my ego isn't easily bruised, so I was ok with that. :p